OTHER POST-EMPLOYMENT BENEFITS
TRUST FUND AGENDA
Las Vegas Metropolitan Police Department
Headquarters Building B – Conference Center
400 S. Martin L. King Boulevard
Las Vegas, NV 89106
September 26, 2018, at 9:00 a.m.
All items on this agenda are scheduled for action unless specifically noted otherwise. Items listed on the
agenda may be taken out of order; two or more agenda items for consideration may be combined; and any
item on the agenda may be removed or related discussion may be delayed at any time.
1. Call To Order
2. Public Comments
This Is A Period Devoted To Comments By The General Public About Items On This
Agenda. If You Wish To Speak To The Committee About Items Within Its Jurisdiction,
But Not Appearing On This Agenda, You Must Wait Until The “Citizen Participation”
Period Listed At The End Of This Agenda. Comments Will Be Limited To Three Minutes.
Please Step Up To The Speaker’s Podium, State Which Agenda Item Or Items You Wish
To Comment On, Clearly State Your Name And Address, And Please Spell Your Last
Name For The Record. If Any Member Of The Committee Wishes To Extend The Length
Of A Presentation, This Will Be Done By The Chair Or The Committee By Majority Vote.
3. Approval Of Agenda With The Inclusion Of Any Emergency Items And Deletion Of Any
Items (For Possible Action)
4. Approve The Minutes Of May 24, 2018 (For Possible Action)
5. Informational Item Reporting On Net Assets And Changes In Net Assets For The Period Ended
June 30, 2018.
6. Informational Item Reporting On The Quarterly Investment Report From FTN Financial Main
Street Advisors, For The Period Ended June 30, 2018.
7. Ratify The Fiduciary Liability Insurance Proposal Agreement Between LVMPD OPEB Trust
Fund And Cragin & Pike, And Authorize The Chair Or His Designee To Sign Agreement Or
Take Other Action As Appropriate (For Possible Action)
8. Ratify The Directors’ & Officers’ Liability Insurance Proposal Agreement Between LVMPD
OPEB Trust Fund And Cragin & Pike, And Authorize The Chair Or His Designee To Sign
Agreement Or Take Other Action As Appropriate (For Possible Action)
OPEB Trust Fund Agenda Page 2 September 26, 2018
9. Citizen Participation
A Period Devoted To Comments By The General Public, If Any, And Discussion Of Those
Comments. Comments Are Limited To Three (3) Minutes. No Action May Be Taken Upon
A Matter Raised Under This Item Of The Agenda Until The Matter Itself Has Been
Specifically Included On An Agenda As An Item Upon Which Action Will Be Taken Per
N.R.S. 241.020.2(C)(3)
10. Next Meeting –November 28, 2018, 2:00 p.m. – Las Vegas Metropolitan Police Department
Headquarters Building B – Conference Center
11. Adjournment Of Meeting
THIS MEETING HAS BEEN PROPERLY NOTICED AND POSTED AT THE FOLLOWING LOCATIONS
Las Vegas Metropolitan Police Headquarters, 400 Martin L. King Boulevard, Principal Location, Building C First Floor
City Hall, 495 South Main Street, First Floor
State Government Office, 555 E Washington Avenue, First Floor
Clark County Government Center, 500 S. Grand Central Parkway, First Floor
Regional Justice Center, 200 Lewis Avenue, First Floor
OTHER POST-EMPLOYMENT BENEFITS TRUST FUND AGENDA
Las Vegas Metropolitan Police Department Headquarters Building B – Conference Center
400 S. Martin L. King Boulevard Las Vegas, NV 89106
May 24, 2018, at 8:30 a.m.
Committee Members Present Committee Members Absent Richard Hoggan (Chair) Jessica Colvin (Vice-Chair) Gary Ameling Karen Keller
1. Call To Order
Chair Hoggan called the meeting to order at 8:32 a.m.
2. Public CommentsThis Is A Period Devoted To Comments By The General Public About Items On This Agenda. If You Wish To Speak To The Committee About Items Within Its Jurisdiction, But Not Appearing On This Agenda, You Must Wait Until The “Citizen Participation” Period Listed At The End Of This Agenda. Comments Will Be Limited To Three Minutes. Please Step Up To The Speaker’s Podium, State Which Agenda Item Or Items You Wish To Comment On, Clearly State Your Name And Address, And Please Spell Your Last Name For The Record. If Any Member Of The Committee Wishes To Extend The Length Of A Presentation, This Will Be Done By The Chair Or The Committee By Majority Vote.
None
3. Approval Of Agenda With The Inclusion Of Any Emergency Items And Deletion OfAny Items (For Possible Action)
Motion: Trustee Keller moved to approve Vote: Unanimous approval
4. Approve The Minutes Of February 28, 2018 (For Possible Action)
Motion: Trustee Ameling moved to approve Vote: Unanimous approval
4
OPEB Trust Fund Agenda Page 2 May 24, 2018
5. Informational Item Reporting On Net Assets And Changes In Net Assets For The PeriodEnded March 31, 2018.
LVMPD Accounting Manager J. Wong briefed the board on the Trust’s financial statements. Due to the changes in reference to GASB 74 and 75, expenses will increase for the next fiscal year.
So noted.
6. Informational Item Reporting On The Quarterly Investment Report From FTN FinancialMain Street Advisors, For The Period Ended March 31, 2018.
President/Chief Investment Officer Rick Phillips with FTN Financial Main Street Advisors summarized for the committee the investments and market conditions related to the OPEB Trust Fund. Reports reviewed were Economic / Market Update dated 5/24/18 and the Quarterly Investment Report as of March 31, 2018.
So noted.
7. Approve The LVMPD OPEB Trust Fund FY18-19 Budget (For Possible Action)
CFO Hoggan briefed the board on the presented budget for Fiscal Year 2019. Assumption of investment income interest of 1% and an assumption of 3% for net appreciations were taken into consideration when creating the budget. A quote is still pending for costs associated with increasing Fiduciary Liability insurance and Directors’ and Officers’ liability insurance. The members discussed the options of increasing the insurance from a coverage of $5 million to $13 million. CFO Hoggan estimated $50,000 for insurance increases. The committee decided to not pursue an increase and keep the insurance coverage at $5 million.
Motion: Trustee Ameling moved to approve with the changes to the insurance costs reduced to $18,000
Vote: Unanimous approval
8. Discuss And Approve The Agreement For Professional Services Between LVMPDOPEB Trust Fund And Eide Bailly, LLP, And Authorize The Chair Or His Designee ToSign Agreement Or Take Other Action As Appropriate (For Possible Action)
CFO Hoggan briefed the board on the presented agreement. Costs were estimated between $15,000 to $20,000.
Motion: Trustee Keller moved to approve Vote: Unanimous approval
OPEB Trust Fund Agenda Page 3 May 24, 2018
9. Citizen ParticipationA Period Devoted To Comments By The General Public, If Any, And Discussion Of Those Comments. Comments Are Limited To Three (3) Minutes. No Action May Be Taken Upon A Matter Raised Under This Item Of The Agenda Until The Matter Itself Has Been Specifically Included On An Agenda As An Item Upon Which Action Will Be Taken Per N.R.S. 241.020.2(C)(3)
None.
10. Next Meeting – August 22, 2018, 2:00 p.m. – Las Vegas Metropolitan PoliceDepartment Headquarters Building B – Conference Center
Alternative meeting dates will be looked at as Trustees Ameling’s and Keller’s schedules would prevent them from attending the next meeting.
So noted.
11. Adjournment Of Meeting
Chair Hoggan adjourned the meeting at 9:15 a.m.
Meeting minutes completed by T. Wilson, PN 4870.
06/30/2018 6/30/2017
Additions to net assets attributed to:
Contributions:
Employer 4,000,000$ 4,000,000$
Investment Income:
Net appreciation (depreciation) in fair value
of investments at:
Quoted market price 536,859 478,722
Interest and dividends 221,926 133,397
Less Investment Fees (2,632) (1,258)
Net Investment Income 756,153 610,863
Total Additions 4,756,153 4,610,863
Deductions from net assets attributed to:
Operating Expenses:
Bank Fees 212 291
Trust Fiduciary Insurance Premiums 18,397 22,059
Investment Consulting Fees 5,000 7,500
OPEB Attorney Fees 180 ‐
Financial Audit Fees ‐ 12,900
Total Deductions 23,789 42,750
Net Increase (Decrease) for the year 4,732,364 4,568,113
Net Assets:
Beginning Net Assets Available 8,683,860 4,115,747 Total Net Assets Available 13,416,224$ 8,683,860$
LAS VEGAS METROPOLITAN POLICE DEPARTMENT
OPEB TRUST FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED JUNE 30, 2018
(Unaudited)
5
06/30/2018 6/30/2017
ASSETS
Investments, at fair value:
Clark County Treasurer's Pool 20,850$ 124,986$
RBIF 13,323,644 8,538,355
Total Investments 13,344,494 8,663,341
Other Assets:
Cash (OPEB Checking Account) 73,192 23,232
Total Assets 13,417,686 8,686,573
LIABILITIES
Liabilities:
Payable‐Investment Consulting Fees 1,250 2,500
Accrued Bank Fees 212 213
Total Liabilities: 1,462 2,713
Net Assets 13,416,224$ 8,683,860$
LAS VEGAS METROPOLITAN POLICE DEPARTMENT
OPEB TRUST FUND
STATEMENTS OF NET ASSETS
FOR THE PERIOD ENDED JUNE 30, 2018
(Unaudited)
Client Management Team
Rick Phillips President & Chief Investment Officer
702-575-6666
Tonya Dazzio Chief Operating & Compliance Officer
702-575-6592
Greg Balls, CFA Portfolio Manager & Analyst
702-575-6655
Christine Wilson Operations Analyst
702-575-6640
Dan Rusk Portfolio Analyst
702-575-6633
June 2018
10655 Park Run Drive Suite 120 | Las Vegas, NV 89144 | Toll Free 888.278.7350 | www.FTNMainStreet.com
Quarterly Investment Report
Las Vegas Metropolitan Police
Department OPEB Trust
5555
6
Portfolio Summary
Sector
Clark County Inv Pool (Fixed Income)
Cash Equivalents - RBIF
U.S. Bonds -RBIF
U.S. Stocks - RBIF
International Stocks - RBIF
Total
Market Value
Book Value
Variance
Total Gain/Loss %
Since Inception
Annualized Return
Since Inception
RBIF Allocations
U.S. Equity 49% 46.5%-54.0%
International Equity 21% 19.0%-23.5%
U.S. Bonds 30% 25%*
*Rebalance minimum
Note: First deposit into RBIF was 12/24/15
RangeTarget
12.53%
4.98%
Total Asset Allocation
11,911,612.55
1,492,502.02
Cost vs Market Value
13,404,114.57
162,634.82
132,363.63
Period ChangePrior Qtr Market ValueCurrent Market Value
2,712,534.54
13,404,114.57
64,606.32
1,139,280.14
3,437,455.46
6,080,509.30
2,549,899.72
13,271,750.94
55,410.42
6/30/2018 Metro OPEB Trust
(1,058,809.27)
316,562.12
656,565.53
120,016.74
80,470.87
3,754,017.58
6,737,074.84
Inv Pool- 0.6%Cash Eqv-RBIF0.9%
U.S. Stocks-RBIF 50.3%
Int'l Stocks-RBIF 20.2%
U.S. Bonds-RBIF 28.0%
Contribution History to OPEB Trust
Month FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26
Jul 333,333
Aug 333,333
Sep 333,333
Oct 333,333
Nov 333,333
Dec 650,000 333,333
Jan 650,000 655,000 333,333
Feb 650,000 655,000 333,333
Mar 487,500 655,000 333,333
Apr 487,500 655,000 333,333
May 487,500 655,000 333,333Jun 487,500 655,000 333,333
Total 3,900,000 3,930,000 4,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2027 Total
3.90 3.93 4.00 11.83
6/30/2018 Metro OPEB Trust
Fiscal Year Contributions to RBIF - Millions
Fiscal Year Contributions to RBIF
0
1
2
3
4
5
6
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
$ M
illio
ns
Market Recap
Quarterly Return:
Key Points
▪ Inflation concerns
▪ Stronger Earnings
▪ Moderated growth
Quarterly Return:
Key Points
▪ Weaker dollar
▪ Accommodative central banks
▪ Slower growth
Quarterly Return:
Key Points
▪ Higher inflation expectations
▪ Potential more aggressive Fed
▪ Improved GDP
Source: Bloomberg, FTN Main Street
(1.05%)
BAML US Treasury Bond Index (Domestic Fixed-Income)
0.22%
6/30/2018 Metro OPEB Trust
S&P 500 (Domestic Stocks)
3.43%
MSCI EAFE (International Stocks)
2400
2500
2600
2700
2800
2900
Mar-18 Apr-18 May-18 Jun-18
S&P 500 Index
1900
1950
2000
2050
2100
Mar-18 Apr-18 May-18 Jun-18
MSCI EAFE Index
2.5
2.7
2.9
3.1
24.20
24.40
24.60
24.80
Mar-18 Apr-18 May-18 Jun-18
5Y
r T-
No
te %
Yie
ld
Tre
asu
ry In
de
x
Treasury Aggregate Bond Index vs 5Yr T-NoteTsy Index 5Yr
Historical Sector Allocation - All Assets
Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18
CC Inv Pool 29.6% 27.0% 24.1% 21.3% 18.5% 15.9% 13.0% 10.9% 8.6% 6.1% 3.1% 0.6%
U.S. Stocks - RBIF 37.4% 38.8% 37.1% 39.0% 40.6% 41.7% 44.0% 45.1% 45.8% 46.9% 48.9% 50.3%
U.S. Bonds - RBIF 14.7% 15.1% 15.9% 23.0% 22.6% 23.9% 23.6% 24.8% 25.9% 26.2% 27.4% 28.0%
Int'l Stocks - RBIF 17.9% 18.8% 22.5% 16.2% 16.9% 17.9% 18.7% 18.9% 19.2% 20.1% 20.0% 20.2%
Cash Equiv - RBIF 0.4% 0.4% 0.3% 0.5% 1.3% 0.6% 0.7% 0.4% 0.5% 0.8% 0.7% 0.9%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Sector
6/30/2018 Metro OPEB Trust
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18
U.S. Stocks-RBIF
U.S. Bonds-RBIF
Int'l Stocks-RBIF
Cash Equv-RBIF
Inv Pool
Historical Sector Allocation - RBIF Assets
Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18
U.S. Stocks - RBIF 53.1% 53.1% 49.0% 49.5% 49.8% 49.6% 50.6% 50.6% 50.1% 49.9% 50.4% 50.6%
Int'l Stocks - RBIF 20.8% 20.7% 20.9% 20.6% 20.8% 21.2% 21.5% 21.2% 21.0% 21.4% 20.6% 20.4%
U.S. Bonds - RBIF 25.5% 25.7% 29.7% 29.2% 27.8% 28.5% 27.1% 27.8% 28.3% 27.9% 28.3% 28.2%
Cash Equiv - RBIF 0.6% 0.5% 0.4% 0.7% 1.6% 0.7% 0.8% 0.4% 0.5% 0.8% 0.7% 0.9%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
6/30/2018 Metro OPEB Trust
RBIF Sector
15%
20%
25%
30%
35%
40%
45%
50%
55%
Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18
Intl. Stock TargetRange
U.S. Bond Target Range
U.S. Stock Target Range
Cost vs Market ValueMetro OPEB Trust6/30/2018
$3.5
$4.5
$5.5
$6.5
$7.5
$8.5
$9.5
$10.5
$11.5
$12.5
$13.5
Mill
ion
s
Cost Value vs. Market Value
Market Value
Cost Value
-$500
-$400
-$300
-$200
-$100
$0
$100
$200
$300
$400
$500
Dec
-15
Jan
-16
Feb
-16
Mar
-16
Ap
r-1
6
May
-16
Jun
-16
Jul-
16
Au
g-1
6
Sep
-16
Oct
-16
No
v-1
6
Dec
-16
Jan
-17
Feb
-17
Mar
-17
Ap
r-1
7
May
-17
Jun
-17
Jul-
17
Au
g-1
7
Sep
-17
Oct
-17
No
v-1
7
Dec
-17
Jan
-18
Feb
-18
Mar
-18
Ap
r-1
8
May
-18
Jun
-18
Tho
usa
nd
s
Gain/Loss from Previous Month
Historical Total Rate of Return Performance - RBIF Investments Only
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun1.810% 0.462% 1.422% 1.533% 1.839% 1.081% 3.914% -3.496% -1.576% 0.530% 1.083% 0.063%1.666% 0.463% 1.279% 1.386% 1.744% 0.958% 3.463% -2.958% -1.377% 0.452% 0.952% 0.122%
0.144% -0.001% 0.143% 0.147% 0.095% 0.123% 0.451% -0.538% -0.199% 0.078% 0.131% -0.059%0.144% 0.144% 0.292% 0.449% 0.557% 0.694% 1.207% 0.565% 0.341% 0.426% 0.571% 0.507%
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY273.112% 12.069% 8.814%1.507% 12.103% 8.307%
1.605% -0.033% 0.507%Benchmark: 49% S&P 500, 30% Barclays Aggregate Treasury Bond, 21% MSCI EAFE -- RBIF Returns are net of feesFY 2016 Started for the month ending January 2016
FTYD Variance
RBIF PortfolioBenchmark
Yearly Variance
Monthly Variance
6/30/2018 Metro OPEB Trust
RBIF PortfolioRBIF Benchmark
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Pe
rce
nt
Var
ian
ce
Monthly and FYTD Total Rate of Return Variance to Benchmark
Monthly FYTD
1.605%
-0.033%
0.507%
-1.50%
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27
Pe
rce
nt
Var
ian
ce
Fiscal Year Total Rate of Return Variance to Benchmark
Historical Total Rate of Return Performance - RBIF Indexes
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun2.055% 0.304% 2.061% 2.332% 3.062% 1.104% 5.72% -3.69% -2.54% 0.384% 2.408% 0.616%
2.895% -0.004% 2.538% 1.529% 1.074% 1.629% 5.03% -4.48% -1.71% 2.373% -2.187% -1.182%
0.170% 1.050% -0.880% -0.260% 0.060% 0.250% -1.32% -0.70% 0.75% -0.780% 0.770% 0.230%
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun2.055% 2.365% 4.475% 6.912% 10.186% 11.402% 17.776% 13.434% 10.555% 10.979% 13.652% 14.351%
2.895% 2.891% 5.503% 7.116% 8.266% 10.029% 15.563% 10.383% 8.498% 11.073% 8.643% 7.360%
0.170% 1.222% 0.331% 0.070% 0.130% 0.381% -0.944% -1.638% -0.900% -1.673% -0.916% -0.688%
U.S. Stocks
Int'l Stocks
U.S. Bonds
6/30/2018 Metro OPEB Trust
U.S. Stocks
Int'l Stocks
U.S. Bonds
-6%
-4%
-2%
0%
2%
4%
6%
8%
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Pe
rce
nt
Var
ian
ce
Monthly Total Rate of ReturnUS Stocks
Int'l Stocks
US Bonds
-6%
-2%
2%
6%
10%
14%
18%
22%
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Pe
rce
nt
Var
ian
ce
Fiscal Year-To-Date Total Rate of ReturnUS Stocks
Int'l Stocks
US Bonds
Stock and Bond Indicies History
Data Souce: Bloomberg
6/30/2018 Metro OPEB Trust
700
1200
1700
2200
2700
3200D
ec-
99
Jun
-00
De
c-0
0
Jun
-01
De
c-0
1
Jun
-02
De
c-0
2
Jun
-03
De
c-0
3
Jun
-04
De
c-0
4
Jun
-05
De
c-0
5
Jun
-06
De
c-0
6
Jun
-07
De
c-0
7
Jun
-08
De
c-0
8
Jun
-09
De
c-0
9
Jun
-10
De
c-1
0
Jun
-11
De
c-1
1
Jun
-12
De
c-1
2
Jun
-13
De
c-1
3
Jun
-14
De
c-1
4
Jun
-15
De
c-1
5
Jun
-16
De
c-1
6
Jun
-17
De
c-1
7
Jun
-18
Ind
ex
Val
ue
S&P 500 and MSCI EAFE Indexes
S&P 500 EAFE
95
97
99
101
103
105
107
109
111
113
115
Sep
-03
Mar
-04
Sep
-04
Mar
-05
Sep
-05
Mar
-06
Sep
-06
Mar
-07
Sep
-07
Mar
-08
Sep
-08
Mar
-09
Sep
-09
Mar
-10
Sep
-10
Mar
-11
Sep
-11
Mar
-12
Sep
-12
Mar
-13
Sep
-13
Mar
-14
Sep
-14
Mar
-15
Sep
-15
Mar
-16
Sep
-16
Mar
-17
Sep
-17
Mar
-18
ETF
Pri
ce
Barclays Aggregate U.S. Bond ETF
Glossary and Disclosure
Report Source Data: RBIF Information:
RBIF: Bank of New York Mellon RBIF investments are overseen by Nevada PERS personnel
Benchmark: Bloomberg Investment object is to generate an 8% long-term return, exceeding CPI by 4.5%
Clark County Investment Pool: FTN Main Street Asset classes will be rebalanced according to range triggers shown on page 2
Rebalancing funding source/destination shall be those asset classes furthest away from their targets
Glossary:
S&P 500: S&P index capturing large-cap U.S. based companies
MSCI EAFE: MSCI index capturing large and mid-cap equities across developed markets in EAFE (Europe, Australasia, and the Far East), excluding the U.S. and Canada
Barclays Aggregate Treasury Index: ETF which seeks to track the investment results of an index composed of U.S. Treasury bonds and notes
Barclays Aggregate Bond: Barclays index which tracks an index of U.S. investment-grade government (including mortgage-backed) and corporate bonds
ETF: Exchange traded fund, is a marketable security that tracks an index, such as the Barclays Aggregate Bond Index
Investment Pool: Short-term, high quality fixed income pool overseen by the Clark County Treasurer
Although this information has been obtained from sources which we believe to be reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for informational purposes only and is not intended as an offer or solicitation with respect to any particular security, investment strategy, or investment product. All herein listed securities are subject to availability and change in price. Past performance is not indicative of future results. Ratings on all securities are subject to change.
FTN Financial Group, FTN Financial Capital Markets, and FTN Financial Portfolio Advisors are divisions of First Tennessee Bank National Association (FTB). FTN Financial Securities Corp (FFSC), FTN Financial Main Street Advisors, LLC, and FTN Financial Capital Assets Corporation are wholly owned subsidiaries of FTB. FFSC is a member of FINRA and SIPC—http://www.sipc.org/. FTN Financial Group, through FTB or its affiliates, offers investment products and services. FTN Financial is not registered as a Municipal Advisor.
This message is intended only for the use of the individual or entity to which it is addressed and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, employee or agent responsible to deliver it to the
September 26, 2018
Las Vegas Metropolitan Police
Department OPEB TrustEconomic/Market Update
1
U.S. Economic Indicator Heatmap
Source: Bloomberg
U.S. Economic Indicator HeatmapIndicator Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Trends
Prob of Recession in 12 Months 10.3 9.0 11.0 11.5 10.4 9.1 10.8 11.2 11.1 12.5 13.6 14.6
GDP YOY % Chg* 2.3 2.5 2.5 2.5 2.6 2.6 2.6 2.9 2.9 2.9 2.8 2.8
Job Gains YOY % Chg 1.4 1.5 1.6 1.6 1.4 1.6 1.6 1.6 1.6 1.7 1.7 1.7
Core CPI YOY % Chg 1.7 1.8 1.7 1.8 1.8 1.8 2.1 2.1 2.2 2.3 2.4 2.4
Core PCE YOY % Chg 1.5 1.6 1.6 1.6 1.6 1.7 2.0 1.9 2.0 1.9 2.0 2.0
Avg Hourly Earnings YOY % Chg 2.8 2.3 2.5 2.7 2.8 2.6 2.6 2.6 2.8 2.7 2.7 2.7
ISM Service 59.4 59.8 57.3 56.0 59.9 59.5 58.8 56.8 58.6 59.1 55.7 58.5
ISM Manufacturing 60.2 58.5 58.2 59.3 59.1 60.8 59.3 57.3 58.7 60.2 58.1 61.3
S&P 500 YOY % Chg 16.2 21.1 20.4 19.4 23.9 14.8 11.8 11.1 12.2 12.2 14.0 17.4
Commodities YOY % Chg -1.7 0.7 -0.1 0.7 2.8 1.7 5.1 11.1 12.8 14.7 6.5 6.7
Retail Sales YOY % Chg 5.2 5.3 6.1 5.3 3.9 4.5 5.1 4.8 6.4 6.1 6.4 6.4
Total Vehical Sales YOY 4.6 1.0 -0.9 -1.6 -1.6 -2.1 4.1 0.6 0.7 4.8 -0.1 3.6
Consumer Confidence % Chg 16.5 25.2 17.6 8.6 11.4 12.0 1.7 5.2 9.5 8.4 6.6 10.8
Existing Home Sales YOY % Chg -1.8 -0.9 2.7 0.7 -4.8 1.1 -1.2 -1.6 -3.4 -2.2 -1.5 -1.5
S&P Home Price YOY % Chg 6.1 6.3 6.4 6.3 6.4 6.7 6.8 6.7 6.5 6.3 6.3 6.3
Fed Funds Rate YOY BP Chng 75 75 75 75 75 75 75 75 75 75 75 75
10 Yr Treasury Rate YOY BP Chg 74 55 3 -4 25 47 35 67 66 56 67 74
1 Yr Treasury Rate YOY BP Chg 70 78 83 92 112 124 107 118 107 108 120 123
10Yr - 1Yr Tsy Spread BP Chg 104 96 80 67 82 80 66 72 64 55 55 41
*Jul -Aug 2018 GDP Estimated Positive for Economic Growth Neutral for Economic Growth Negative for Economic Growth
2
Fed Probability of Recession in 12 Months Index
Source: Bloomberg
3
GDP: Strong 2nd Quarter…GDP Projected to Slow
Source: Bloomberg
Fed
: “4
20
15
Hik
es”
Fed
: “4
20
16
Hik
es”
4
GDP: A Record Was Broken
Source: Bloomberg
5
Inflation…Finally At Target
Source: Bloomberg
6
Phillips Curve Not Working
Source: FTN
Wage growth is unusually sticky in this business cycle
7
US Employment Growth: Strong, But Slowing
Source: Bloomberg
A Record 95 Consecutive Months of Job Growth…Previous Record is 48 Months
8
Consumer Strong…But There are Some Mixed Signals
9
Emerging Market Stocks Aren’t Happy Campers
Source: Bloomberg
Pe
rce
nt
Ret
urn
S&P 500
Emerging Mkts
20
% D
iffe
ren
ce
10
Is Emerging Market Debt Going to Be a Problem?
Source: FTN
11
Defaults Rattle Chinese Stocks
Source: FTN
12
Fed Funds Hike Probabilities
Source: CBOE
13
Fed Funds Futures vs. Fed Dots
Source: Bloomberg
14
US 2Yr Hits Highest Rate Since 2018
Source: FTN
But there are still lots of negative nominal and real rates around the world
15
US Treasury and Fed Funds
Source: Bloomberg
Emerging Mkt Worries
30’ish BP Range for 6 Months
16
10Yr-1Yr Treasury Spread: Recession Predictor
Source: Bloomberg
17
Stocks Have Done Very Well
18
Will Stocks Set a New Record?
19
Nevada PERS Returns…Solid
20
Disclosure
The views expressed herein are those of the speaker and do not necessarily represent the views of FTN Financial Main Street
Advisors, LLC or its affiliates. Views are based on data available at the time of this presentation and are subject to change based
on market and other conditions. We cannot guarantee the accuracy or completeness of any statements or data. The information
provided does not constitute investment advice and it should not be relied upon as such. It is not a solicitation to with respect to
an investment strategy or investment product and is not a solicitation to buy and/or an offer to sell securities. It does not take into
account any investor’s particular investment objectives, strategies, tax status, or investment horizons. All material has been
obtained from sources believed to be reliable, but we make no representation or warranty as to its accuracy and you should not
place any reliance on this information. Past performance is no guarantee of future results.
FTN Financial Group, FTN Financial Capital Markets, and FTN Financial Portfolio Advisors are divisions of First Tennessee Bank
National Association (FTB). FTN Financial Securities Corp (FFSC), FTN Financial Main Street Advisors, LLC, and FTN Financial
Capital Assets Corporation are wholly owned subsidiaries of FTB. FFSC is a member of FINRA and SIPC—http://www.sipc.org/.
FTN Financial Group, through FTB or its affiliates, offers investment products and services. FTN Financial is not registered as a
Municipal Advisor.
1
SUMMARY OF INSURANCE
FIDUCIARY LIABILITY
06-02-2018 TO 06-02-2019
Prepared for
LAS VEGAS METROPOLITAN DEPARTMENT
OPEB TRUST FUND
Presented by
Scott T. Kerestesi
Cragin & Pike
2603 W. Charleston Blvd.
Las Vegas, NV 89102
(702) 877-1111
7
2
ACCOUNT MANAGEMENT TEAM
Cragin & Pike
2603 W. Charleston Blvd., Las Vegas, NV 89102
www.cragin-pike.com
(702)877-1111 FAX (702) 258-3394
No matter how comprehensive or competitively priced your insurance program is, you still need
people to provide ongoing service. The individuals who make up your account management team
include some of the industry’s finest professionals. Our insurance staff knows that you expect and
deserve the best. These are the individuals who will be servicing your account:
INSURANCE QUESTIONS or POLICY CHANGES
In the event you have a question on insurance coverage
provided by your current insurance program, possible
future or projected business endeavors, or if you need to
make a policy change or request a certificate of insurance,
you should contact your producer, or: Florine Adams
Account Manager
CLAIMS
In the event you have a claim which needs
to be reported to your insurance company, Donamia Robinson
you should contact: Claim Representative
BONDS
In the event you require a bond for a specific
project or service, you should contact: Rena Casprowitz
Bond Representative
LOSS CONTROL
In the event you have a question or need assistance with loss Steve Walker
control, you should contact your producer, or: Brad Nolan
ACCOUNT EXECUTIVE Scott T. Kerestesi
3
CRAGIN & PIKE
As an independent insurance agency, Cragin & Pike represents numerous major insurance companies. A
diverse selection of products is available to our clients. As part of our comprehensive range of client
services, we offer Loss Control and Risk Management services tailored to the specific needs of our
Commercial customers.
In preparing your proposal, we have worked hard to build an insurance program that delivers superior
protection at a reasonable cost. Our recommendations are based on careful analysis of exposures unique to
your operation and our knowledge of the quality insurance products available in today’s marketplace.
We appreciate the opportunity to evaluate your company’s needs and provide a sound, competitively priced,
comprehensive insurance program. We look forward to working with you in the future.
All possible care was taken in preparing this brief description of the policy coverages, however it is not a
legal contract. Please refer to the actual policies for contract language relating to complete terms,
conditions, limitations, definitions, and exclusions. If there is any discrepancy between the policy and this
description, the provisions of the policy shall determine coverage. Specimen copies of all policies are
available for review prior to the binding of coverage.
In evaluating your exposures to loss, we have been dependent upon information provided by you. If there
are other areas that need to be evaluated prior to binding of coverage, please bring them to our attention.
Should any of your business operations or exposures to loss change after coverage is bound, please let us
know promptly so proper coverage(s) can be discussed.
Cragin & Pike retains copies of insurance policies as required by Nevada Revised Statutes. Depending on
the type of policy, this requirement can be from three (3) to five (5) years.
As the Insured policy holder, you should determine how long you should retain your original insurance
policies. Cragin & Pike assumes no responsibility to keep records longer than required by statute.
In addition to a commission for the sale of insurance policies, this agency may be eligible for
contingent/profit sharing income based upon the amount and profitability of all business placed with a
particular insurance company.
Consult the policy for definitions and limitations. The terms of this summary do not represent contract
terms. The policy is subject to company underwriting practices.
4
INSURANCE COMPANIES
Listed below are the insurance companies currently providing your insurance coverage:
Type of Insurance Insurance Company Policy Number Policy Period
Fiduciary Liability Hudson Insurance Co SFD3121067702 06/02/2018 to 06/02/2019
5
WHO IS INSURED
Important information about Named Insureds
The first named insured is given certain rights and responsibilities by the policy contract language.
If more than one insured is named, the one intended to receive these rights and responsibilities
should be named first.
All legal entities or individuals owning property or involved in the business operations to be
insured must be specifically named to be covered. All changes in ownership must be reported to
us immediately. The coverages outlined in the proposal apply only to those entities identified
below.
First Named Insured: Las Vegas Metropolitan Police Department
OPEB Trust Fund
Other Named Insureds:
6
FIDUCIARY INSURANCE
This insurance provides protection against loss as a result of acts or omissions of individuals who have
discretionary responsibility involving administration of employee benefits, a designated pension or profit
sharing plan, or a newly created plan, subject to all policy terms, conditions, and exclusions.
PLAN (or PLANS): Las Vegas Metropolitan Police Department OPEB Trust Fund
LIMITS OF LIABILITY:
(a) Aggregate Limit – Aggregate limit of liability for all Loss under this policy,
including Claim Expenses $ 5,000,000
(b) Trustee Claim Expenses Sublimit – Aggregate limit of liability for all Claims
Expenses in connection with Claims solely alleging Wrongful Acts as defined in
Section II.R(3) of the policy (included within and not in addition to the maximum
aggregate limit of liability above)
Not applicable
for
governmental
plan
(c) Voluntary Compliance Program Expenditures Sublimit – Aggregate limit of
liability for all Voluntary Compliance Program Expenditures(included within and not
in addition to the maximum aggregate limit of liability above)
$ 100,000
(d) ERISA 502(c) Civil Penalties Sublimit – Aggregate limit of Liability for all Loss in
the form of civil fines or ay excise tax imposed pursuant to Section 502(c) of ERISA and
the Pension Protection Act of 2006 (included within and not in addition to the maximum
aggregate limit of liability above)
Not applicable
for
governmental
plan
(e) HIPAA and HITECH Fines & Penalties Sublimit – Aggregate limit of liability for
all Loss in the form of civil fines and penalties imposed pursuant to the Health Insurance
Portability and Accountability Act of 1996 (HIPAA) and the HITECH Act of 2009
(included within and not in addition to the maximum aggregate limit of liability above)
$ 100,000
(f) PPACA Fines & Penalties Sublimit – Aggregate limit of liability for all Loss in the
form of civil fines and penalties imposed pursuant to the Patient Protection and
Affordable Care Act (PPACA) (included within and not in addition to the maximum
aggregate limit of liability above)
$ 100,000
(g) Section 4975 Penalties Sublimit – Aggregate limit of liability for all Loss in the
form of excise taxes imposed pursuant of Section 4975 of the Internal Revenue Code
(included within and not in addition to the maximum aggregate limit of liability above)
$ 100,000
(h) ERISA Section 502(a) (3) Relief Sublimit – Aggregate limit of liability for all Loss
in the form of equitable relief imposed pursuant to Section 502 (a)(3) of ERISA
(included within and not in addition to the maximum aggregate limit of liability above)
Not applicable
for government
plan
(i)Benefit Overpayment Sublimit – Aggregate limit of liability for all benefit
overpayments as defined in Section II.H(5) of the policy (included within and not in
addition to the maximum aggregate limit of liability above)
$ 50,000
(j) Cyber Essentials – Aggregate limit of liability for Content Restoration
Expenditures and Crisis Notification Expenditures as defined in Section II.E and II.G
of the policy (included within and not in addition to the maximum aggregate limit of
liability above)
$ 50,000
7
FIDUCIARY INSURANCE, CONTINUED
RETENTION (Each Claim): $ 100,000
PENDING or PRIOR PROCEEDING DATE: 06/02/2016
EXTENDED REPORTING PERIOD: Twelve (12) Month extended reporting period is
available for 100% of the total annual premium, subject
to Section IV.B of the policy
8
PREMIUM SUMMARY
Insurance Coverage
Estimated
Annual Premium
FIDUCIARY LIABILITY $ 9,897.00
TERRORISM
9
TERRORISM
On November 26, 2002, President Bush signed into law the Terrorism Risk Insurance Act of
2002, which requires insurers to make coverage for acts of international terrorism available to
existing and future commercial policyholders. The Act covers all lines of insurance, except
Personal Lines, Multi-Peril Crop and Medical Malpractice. (International “certified” terrorism is
defined as acts committed against the U. S. on behalf of any foreign person or interest. i.e. the
World Trade Center destruction. Domestic “non-certified” terrorism acts are not covered by the
act, i.e. the Oklahoma City bombing.) Under the new law, insurers remain directly and primarily
responsible for future terrorism losses. However, the federal government will now step in to
share in the cost of catastrophic terrorist events.
The law provides that insurers may charge current and future policyholders a premium for
coverage for international terrorist acts, but it provides those policyholders (other than workers’
compensation insureds) with a means to opt out of—and not pay any additional premium for—
that coverage. Also, as of November 26, terrorism exclusions in existing policies are deemed
null and void to the extent they apply to acts of international (as opposed to domestic) terrorism.
Exclusions can be reinstated, however, at the policyholder’s direction, or in the event the
policyholder fails to pay any additional premium charge assessed by the insurer.
The Act requires that an insurance company clearly and conspicuously disclose, during the quote
process and on the policy itself the premium associated with coverage for terrorist acts. With
respect to outstanding quotes and policies issued in the immediate future, an insurance company
will notify those applicants and policyholders of any applicable terrorism premium and of their
right to reject terrorism coverage. Even if the terrorism premium is $0.00, it will be disclosed.
For additional information about the Terrorism Risk Insurance Act of 2002, you can visit the
National Association of Insurance Commissioners’ website at www.naic.org or the U. S.
Treasury Department website at www.treasury.gov\trip.
10
PRIVACY POLICY NOTICE
Privacy Policy Notice
(as of July 1, 2001)
Title V of the Gramm-Leach-Bliley Act (GLBA) generally prohibits any financial
institution, directly or through it affiliates, from sharing nonpublic personal information
about you with a non-affiliated third party unless the institution provides you with a notice
of its privacy policies and practices, such as the type of information that it collects about
you and the categories of persons or entities to whom it may be disclosed. In compliance
with GLBA, we are providing you with this document, which notifies you of the privacy
policies and practices of Cragin & Pike, Inc.
Collecting Information:
We collect nonpublic personal information about you from the following sources:
• Information we receive from you on applications or other forms
• Information about your transactions with us, our affiliates or others
• Information we receive from a consumer reporting agency
Disclosing Information:
We do not disclose any nonpublic personal information about our customers or
former customers to anyone, except as permitted by law.
Confidentiality and Security
We restrict access to nonpublic personal information about you to those employees who
need to know that information to provide products or services to you. We maintain
physical electronic and procedural safeguards that comply with federal regulations to
guard your nonpublic personal information.
Changes in Privacy Policy
We may choose to modify this policy at any time. If we make material changes,
we will provide current customers with a revised notice that describes our new practices
on an annual basis.
1
SUMMARY OF INSURANCE
DIRECTORS’ & OFFICERS’ LIABILITY
06-02-2018 TO 06-02-2019
Prepared for
LAS VEGAS METROPOLITAN POLICE
DEPARTMENT OPEB TRUST FUND
Presented by
Scott Kerestesi
Cragin & Pike
2603 W. Charleston Blvd.
Las Vegas, NV 89102
(702) 877-1111
8
2
ACCOUNT MANAGEMENT TEAM
Cragin & Pike
2603 W. Charleston Blvd., Las Vegas, NV 89102
www.cragin-pike.com
(702)877-1111 FAX (702) 258-3394
No matter how comprehensive or competitively priced your insurance program is, you still need
people to provide ongoing service. The individuals who make up your account management team
include some of the industry’s finest professionals. Our insurance staff knows that you expect and
deserve the best. These are the individuals who will be servicing your account:
INSURANCE QUESTIONS or POLICY CHANGES
In the event you have a question on insurance coverage
provided by your current insurance program, possible
future or projected business endeavors, or if you need to
make a policy change or request a certificate of insurance, Florine Adams
you should contact your producer, or: Account Manager
CLAIMS
In the event you have a claim which needs
to be reported to your insurance company, Donamia Robinson
you should contact: Claim Representative
BONDS
In the event you require a bond for a specific Rena Casprowitz
project or service, you should contact: Bond Representative
LOSS CONTROL
In the event you have a question or need assistance with loss Steve Walker
control, you should contact your producer, or: Brad Nolan
ACCOUNT EXECUTIVE Scott Kerestesi
3
CRAGIN & PIKE
As an independent insurance agency, Cragin & Pike represents numerous major insurance companies. A
diverse selection of products is available to our clients. As part of our comprehensive range of client
services, we offer Loss Control and Risk Management services tailored to the specific needs of our
Commercial customers.
In preparing your proposal, we have worked hard to build an insurance program that delivers superior
protection at a reasonable cost. Our recommendations are based on careful analysis of exposures unique to
your operation and our knowledge of the quality insurance products available in today’s marketplace.
We appreciate the opportunity to evaluate your company’s needs and provide a sound, competitively priced,
comprehensive insurance program. We look forward to working with you in the future.
All possible care was taken in preparing this brief description of the policy coverages, however it is not a
legal contract. Please refer to the actual policies for contract language relating to complete terms,
conditions, limitations, definitions, and exclusions. If there is any discrepancy between the policy and this
description, the provisions of the policy shall determine coverage. Specimen copies of all policies are
available for review prior to the binding of coverage.
In evaluating your exposures to loss, we have been dependent upon information provided by you. If there
are other areas that need to be evaluated prior to binding of coverage, please bring them to our attention.
Should any of your business operations or exposures to loss change after coverage is bound, please let us
know promptly so proper coverage(s) can be discussed.
Cragin & Pike retains copies of insurance policies as required by Nevada Revised Statutes. Depending on
the type of policy, this requirement can be from three (3) to five (5) years.
As the Insured policy holder, you should determine how long you should retain your original insurance
policies. Cragin & Pike assumes no responsibility to keep records longer than required by statute.
In addition to a commission for the sale of insurance policies, this agency may be eligible for
contingent/profit sharing income based upon the amount and profitability of all business placed with a
particular insurance company.
Consult the policy for definitions and limitations. The terms of this summary do not represent contract
terms. The policy is subject to company underwriting practices.
4
INSURANCE COMPANIES
Listed below are the insurance companies currently providing your insurance coverage:
Type of
Insurance
Insurance
Company
Policy
Number
Policy
Period
Directors’ & Officers Hudson Insurance Co SHP3121017002 06-02-2018 to 06-02-2019
5
DIRECTORS & OFFICERS LIABILITY INSURANCE
This insurance provides protection for loss which the insured is legally obligated to pay, as a result of
wrongful acts committed, attempted, or allegedly committed or attempted by an Insured Person subject to
all policy terms, conditions, and exclusions.
INSURED PERSONS: Any person who has been, now is, or shall become a duly
elected director or a duly elected or appointed officer,
Executive Director or employee of the Insured
Organization.
LIMIT OF LIABILITY: $5,000,000 Aggregate Limit of Liability for all Loss
$5,000,000 Maximum Aggregate Limit of Liability
RETENTION: $0.00 each Claim under Insuring Agreement I (A)
$10,000 each Claim under Insuring Agreement I (B)
$10,000 each Claim under Insuring Agreement I (C)
INSURANCE: DIRECTORS & OFFICERS LIABILITY,
CLAIMS MADE FORM
PRIOR OR PENDING DATE: 11/21/2016
COVERAGE FORM: HFP-NPGTC-001 (12/09) – (Not-For-Profit Defender Policy
Form)
DEFENSE COSTS: Within the limit of liability
DISCOVERY PERIOD: Duration: 1 Year
Premium: 75%
EXCLUSIONS: Refer to Policy for a complete list
ERISA or any Similar Act
Bodily Injury/Property Damage
Pollutants
ENDORSEMENTS: NP-ST-AM.19 Defender Nevada Changes (GTC) Endorsement
HFP-NP-AM.99Coordination of Insurer Limits of Liability
Endorsement
CLAIMS MADE FORM: Claims-Made coverage requires that the wrongful act giving
rise to the claim must first be made during the policy period
and be reported to the insurance company during the policy
period.
PREMIUM: $8,500.00
6
PRIVACY POLICY NOTICE
Privacy Policy Notice
(as of July 1, 2001)
Title V of the Gramm-Leach-Bliley Act (GLBA) generally prohibits any financial
institution, directly or through it affiliates, from sharing nonpublic personal information
about you with a non-affiliated third party unless the institution provides you with a notice
of its privacy policies and practices, such as the type of information that it collects about
you and the categories of persons or entities to whom it may be disclosed. In compliance
with GLBA, we are providing you with this document, which notifies you of the privacy
policies and practices of Cragin & Pike, Inc.
Collecting Information:
We collect nonpublic personal information about you from the following sources:
• Information we receive from you on applications or other forms
• Information about your transactions with us, our affiliates or others
• Information we receive from a consumer reporting agency
Disclosing Information:
We do not disclose any nonpublic personal information about our customers or
former customers to anyone, except as permitted by law.
Confidentiality and Security
We restrict access to nonpublic personal information about you to those employees who
need to know that information to provide products or services to you. We maintain
physical electronic and procedural safeguards that comply with federal regulations to
guard your nonpublic personal information.
Changes in Privacy Policy
We may choose to modify this policy at any time. If we make material changes,
we will provide current customers with a revised notice that describes our new practices
on an annual basis.